Allowed

Karnataka Bank Limited v. Sathish

DRT27 Aug 2026OA/1890/2023

Case brief

AI extract

What is this about?

DRT allowed an original application filed by Karnataka Bank Ltd against legal heirs of a deceased borrower for issuance of a recovery certificate. The debt was for a vehicle loan, and the recoverable amount was reduced to a simple interest rate of 10%.

What did the court decide?

Recovery Certificate to be drawn for Rs. 31,87,999/- with further interest at 10% p.a. (simple) from the date of the OA filing till realization.

Karnataka Bank Limited versus Sathish — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 27^th Day of August, 2026

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Present: Sri. T. RAJESH

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Presiding Officer OA.No.1890/2023

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BETWEEN:

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Karnataka Bank Ltd Branch office at: No. 374, Kolar Main Road, Near Taluk Panchayath Office, Banga pet – 563 114

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Rep by its Branch Manager Sri. Tejesh R M …APPLICANT

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AND:

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Mr. R Satish

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S/o. R Rajanna Aged about 40 years R/at: Katha No. 63/A, Yaluvaguli Village, Tekal hobli & post, Malur Taluk, Kolar – 563 137

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Mr. Mahesh Chandra C S/o. V Chandrappa Aged about 39 years

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Mr. Satish Chandra C S/o. V Chandrappa Aged about 37 years

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Defendant nos. 2 & 3 R/at: #78, Kavalagiriyanahalli Village, Tekal Hobli & Post, Malur Taluk, Kolar – 563 137 ...DEFENDANTS

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OA-1890/2023

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Counsel on record/appeared for:

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Applicant : Nithin Chandra M Defendants : Ex parte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 31,87,999/- (Rupees Thirty-One Lakhs Eighty-Seven Thousand Nine Hundred and Ninety-Nine Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that, the defendant nos. 2 & 3 are the legal heirs of the deceased borrower. The defendant no.1 & Late borrower Mr. Pradeep Chandra are availed a vehicle loan of Rs. 30,68,072/- (Rupees Thirty Lakhs Sixty-Eight Thousand and SeventyTwo Only) for the purpose of purchasing new Toyota Fortuner car.

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The defendant executed necessary loan document in favour of the applicant bank as security for the due repayment of the loan, interest, cost and charges. The Defendant no.1 & Late borrower Mr. Pradeep Chandra had also executed hypothecation agreement dated 21.11.2020.

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It is further contended that, despite availing the credit facility, agreeing to service the loan amount promptly and regularly, the defendants failed in complying the same, resulting in default in

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OA-1890/2023

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repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

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Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set ex parte on 18.03.2026. 7. The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-1 to A-11 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained ex parte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of credit facility as stated in the OA,

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OA-1890/2023

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creation of the security interest and the defaults committed in the accounts. The liability of the defendants and the claim of the amount

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due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is to be allowed.

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Taking into consideration the facts that the credit facility is

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availed for Vehicle purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal of the view

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that OA can be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.1890/2023 stands allowed,

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i) The applicant is allowed to recover an aggregate sum of

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Rs. 31,87,999/- (Rupees Thirty-One Lakhs Eighty-Seven Thousand Nine Hundred and Ninety-Nine Only) with further interest @10% p.a.(simple) from the date of filing OA till the realization, from the defendant no.1, from the defendants no.2 & 3 to the extent of their inheritance of any estate form the deceased borrower, Mr. Pradeep

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Chandra, after giving credit to all the amounts recovered and received during the pendency of the OA allowed the same to be recovered by proceeding against the schedule property. The schedule

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OA-1890/2023

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property to the OA be the schedule property to the Recovery Certificate.

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ii) If the sale proceeds are not found sufficient to cover the

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amount due and payable to the applicant bank, the defendants no. 1

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to 3 jointly, severally and personally and their assets are liable for all

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such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, stands disposed of in

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terms of this final order.

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Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (HS), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 27^th Day of August, 2026].

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PRESIDING OFFICER

Sd/- (T. RAJESH)

OA-1890/2023

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Ravi Shankara M H, S/o. Mr. M D Hiriyanna Rao, Branch

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Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit	Particulars of Documents
Nos.
A1	True copy of the credit sanction intimation letter dt. 21.11.2020 bearing ref. no. DIGI/AGMS/RLPC/650/42460/2020-21/21-11- 2020 issued by the applicant bank
A2	True copy of the key fact statement dtd. 21.11.2020
A3	True copy of the undertaking letter dtd 21.11.2020 executed by borrower undertaking that the vehicle purchased out of loan vehicle purchased out of loan proceeds will be driven by valid license holder only
A4	True copy of the declaration letter dtd. 21.11.2020 executed by borrower undertaking that the loan proceeds will be utilized for the purpose of purchase of vehicle only.
A5	True copy of the term loan agreement dtd. 21.11.2020 for Rs. 30,68,072/- (Rupees Thirty Lakh Sixty-Eight Thousand and Seventy-Two Only) executed by defendant no.1 and Pradeep Chandra in favour of the applicant bank
A6	True copy of the letter of hypothecation dtd. 21.11.2020 executed by defendant no.1 and Pradeep Chandra in favour of the applicant bank
A7	True copy of the letter of hypothecation dtd. 05.12.2020 executed bydefendant no.1 in favour of the applicant bank
A8	True copy of the registration card issued from the office of the RTO,registeringauthority,Bengaluru south RTO isproduced
A9	True copy of death certificate dated 26.05.2021 issued from office of the medical officer,SNR hospital,Kolar taluk,Kolar district

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OA-1890/2023

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A10	True copies of the legal notice dated 15.07.2023 issued by the applicant bank through its advocate under register post along with postal receipts (2nos); duly served postal acknowledgement w.r.t defendant no.2 (1 nos); returned postal cover with an endorsement “refused” w.r.t defendant no.1 along with online postal acknowledgement(1 nos)
A11	True, correct and certified statement of account relating to the above said term loan bearing no. 9387001600016701 maintained by the applicant bank in its ordinary course of business and duly certified asper the banker’s book evidence act
Witness	Examined for the Defendants: -Nil -
List of Do	cuments Exhibited for the Defendants: -Nil -

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Sd/-

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(T. RAJESH)

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PRESIDING OFFICER

Karnataka Bank Limited v. Sathish

Case brief

What is this about?

What did the court decide?

Karnataka Bank Limited v. Sathish

Case brief

What is this about?

What did the court decide?

What the court decided

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